December is a time for reflection and an opportunity to consider how to change or shift priorities in the new year as we look to build more efficient operations, capitalize on new opportunities, and/or overcome traditional roadblocks.
As we look ahead to 2025, the increased number of large, complex projects on the horizon will require unprecedented levels of automation, and digitization opportunities abound as we navigate our path toward AI and an even more connected world. Disruption across the supply chain persists, and the lack of skilled workers threatens to thwart progress. Therefore, we must prioritize efforts to identify and encourage the next generation of tradespeople and build a more resilient supply chain to stay competitive in the coming year.
To help best prepare for the coming year, here are the five trends contractors should keep top of mind, reflecting the continued need for digital transformation, dedicated workforce development, and strategic technology investment.
No. 1: Supply chain constraints
Developing more resilient supply chain strategies will continue to be a top priority. The impact of recent natural disasters underscores the need for contractors to better prepare for product availability issues and delivery delays to manage expectations and costs effectively. One of the most valuable ways to build a resilient supply chain is to prioritize long-term planning, which includes how you source products. Managing multiple suppliers is not only time-consuming but can also create inefficiencies — something no business can afford in this challenging environment. Relying on strategic inventory management services and solutions help you more efficiently manage and diversify supplier partners, gain much-needed visibility into lead times/potential delays, and optimize procurement spend. You are also better positioned to get the right parts to the right place at the right time, despite continued disruption.
No. 2: Labor-saving services
Given labor shortages and the complexities of modern projects, services/solutions such as pre-kitting, prefab, virtual warehouses, and efficient project management are essential for optimizing time and resources on site. No contractor can afford to have skilled laborers unpacking boxes, looking for parts, and breaking down materials. Relying on pre-kitting for example, ensures materials arrive pre-assembled and ready for installation. This allows your valued tradespeople to stay focused on the highly skilled work tasks they were hired to do.
No. 3: Recruiting the next generation
There has never been a more crucial time to attract, train, and retain skilled workers. Our industry continues to face crippling labor shortages while the demand for large, complex electrification projects skyrockets. Working together, we can help fuel and strengthen the talent pipeline. Consider partnering with an educational institution or industry association to evangelize the critical role of tradespeople in powering our world; develop or contribute to a scholarship program to help reduce the financial costs associated with trade school and apprenticeship; and/or conduct targeted outreach to high school and community college students to build awareness and cultivate the next generation of tradespeople.
No. 4: Digitization before AI
The path to effectively leveraging AI starts with digitization. Contractors should first automate existing processes to improve efficiency and resource management before pursuing AI technologies. For example, consider how to simplify order management by enabling seamless access to product and shipping information through text, saving contractors essential time on the job site and streamlining material management. Contractors can also consider investing in project management software, building information modeling (BIM), and other technologies that streamline workflows and improve collaboration, laying the foundation for investment in AI innovations down the road.
No. 5: Dynamic partnerships for complex projects
Building strong relationships with reliable partners will be essential for navigating complex projects and overcoming diverse challenges to ensure effective project execution. With so many variables to consider as you embark on new and demanding projects, identify industry partners with proven experience, strong relationships worldwide, and innovative services and solutions designed to address today’s biggest challenges. No one should go it alone. When responsibility is shared, you can rest easy knowing the projects you have invested in will yield better results and solidify long-term success.
Conclusion
While we can’t avoid continued headwinds, we can be smarter about the way we navigate through them. Relying on innovative technology to streamline and automate operations, investing in our industry to help build an inspired workforce, and finding opportunities to collaborate with industry partners to tackle complex projects will help set our industry up for success and growth in the coming year.
